Alliance Boots to refocus contract manufacturing business on beauty, skin care product development

By Michael Johnsen

LONDON — Alliance Boots on Wednesday announced its contract manufacturing business BCM will invest heavier into core competency categories, such as beauty and skin care, as it discontinues third-party manufacturer development in unnamed "unprofitable" categories.

“By modernizing and improving the efficiency of our Nottingham factory, we strengthen its position for the future and make it more suited to support the increasing global footprint of our product brands," stated Alex Gourlay, chief executive of the health and beauty division at Alliance Boots. "It is an important step in our continued efforts to keep contract manufacturing in the U.K., despite the ongoing challenges that the industry faces.”

Along with the renewed focus on beauty brands, BCM will invest in new product technologies to help drive Boots product development. "This will better position the business to seize growth opportunities generated by the further internationalization of the group’s product brands, including within the U.S. market," Boot stated.